NEW DELHI, September 23: India’s private sector activity strengthened in September, with output growth accelerating across both manufacturing and services, according to the latest HSBC Flash India PMI data released on Wednesday.
The HSBC Flash India Composite PMI Output Index rose to 56.5 in September from 54.3 in August, signalling a sharper expansion in business activity and the strongest growth since June. Manufacturing led the improvement, while services activity also strengthened during the month.
The HSBC Flash India Manufacturing PMI increased to 55.7 from 52.8 in August, marking the best improvement in manufacturing operating conditions in seven months. The Manufacturing PMI Output Index rose to 58.2 from 54.8, while the Services PMI Business Activity Index increased to 55.8 from 54.1.
New business growth accelerated during September, with demand strengthening across both manufacturing and services. The improvement was more pronounced among goods producers, where sales growth reached a seven-month high and remained stronger than that recorded by services companies.
Service providers reported stronger demand for property, transport services and new travel bookings, along with growing client interest in software and digital solutions. Manufacturers cited stronger demand for aluminium products, electronic items, food, pharmaceuticals and new product models.
New export orders continued to rise, although the pace of expansion slowed from August and was the weakest in close to three years. The moderation reflected slower growth at services firms, while manufacturers recorded a marginally stronger increase in overseas orders.
Employment also expanded solidly during September as companies added staff amid sustained growth in output and new orders. Job creation was recorded across both manufacturing and services, with broadly similar rates of expansion.
Input-cost inflation across the private sector eased to its lowest level since January, as softer cost pressures at services companies offset a pickup among manufacturers. Selling-price inflation was broadly unchanged at the composite level, with stronger factory-gate price increases contrasting with weaker increases in charges by service providers.
Business confidence also improved, with optimism about output over the coming 12 months rising to a four-month high across both manufacturing and services.
Manufacturing inventories increased sharply during the month. Input stocks rose at the fastest pace since February, while growth in finished-goods inventories reached an 11-and-a-half-year high.
HSBC Chief India Economist Pranjul Bhandari said stronger manufacturing had driven the improvement in private sector activity, while renewed tensions in the Middle East had prompted firms to build inventory buffers to manage uncertainty.
The flash PMI data were collected between September 7 and 18, 2026. Flash readings are based on around 80-90 per cent of total survey responses and are intended to provide an early indication of the final monthly data.
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